SHOALS TECHNOLOGIES GROUP -A (SHLS) Stock Fundamental Analysis
NASDAQ:SHLS - Nasdaq - US82489W1071 - Common Stock - Currency: USD
Overall SHLS gets a fundamental rating of 6 out of 10. We evaluated SHLS against 93 industry peers in the Electrical Equipment industry. SHLS has an excellent financial health rating, but there are some minor concerns on its profitability. SHLS may be a bit undervalued, certainly considering the very reasonable score on growth These ratings would make SHLS suitable for value investing!
1. Profitability
1.1 Basic Checks
In the past year SHLS was profitable.
In the past year SHLS had a positive cash flow from operations.
In the past 5 years SHLS has always been profitable.
Of the past 5 years SHLS 4 years had a positive operating cash flow.
1.2 Ratios
SHLS has a better Return On Assets (2.42%) than 75.27% of its industry peers.
With a decent Return On Equity value of 3.41%, SHLS is doing good in the industry, outperforming 72.04% of the companies in the same industry.
With a decent Return On Invested Capital value of 4.38%, SHLS is doing good in the industry, outperforming 72.04% of the companies in the same industry.
The Average Return On Invested Capital over the past 3 years for SHLS is below the industry average of 9.89%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 2.42% | ||
| ROE | 3.41% | ||
| ROIC | 4.38% |
ROA(3y)9.74%
ROA(5y)9.41%
ROE(3y)18.49%
ROE(5y)N/A
ROIC(3y)7.05%
ROIC(5y)8.61%
1.3 Margins
With a decent Profit Margin value of 4.91%, SHLS is doing good in the industry, outperforming 77.42% of the companies in the same industry.
In the last couple of years the Profit Margin of SHLS has declined.
Looking at the Operating Margin, with a value of 11.29%, SHLS belongs to the top of the industry, outperforming 81.72% of the companies in the same industry.
In the last couple of years the Operating Margin of SHLS has declined.
With an excellent Gross Margin value of 34.39%, SHLS belongs to the best of the industry, outperforming 80.65% of the companies in the same industry.
In the last couple of years the Gross Margin of SHLS has grown nicely.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 11.29% | ||
| PM (TTM) | 4.91% | ||
| GM | 34.39% |
OM growth 3Y-8.94%
OM growth 5Y-7.19%
PM growth 3Y77.6%
PM growth 5Y-19.03%
GM growth 3Y-2.8%
GM growth 5Y3.07%
2. Health
2.1 Basic Checks
The Return on Invested Capital (ROIC) is below the Cost of Capital (WACC), so SHLS is destroying value.
SHLS has less shares outstanding than it did 1 year ago.
SHLS has about the same amout of shares outstanding than it did 5 years ago.
The debt/assets ratio for SHLS has been reduced compared to a year ago.
2.2 Solvency
An Altman-Z score of 3.37 indicates that SHLS is not in any danger for bankruptcy at the moment.
The Altman-Z score of SHLS (3.37) is better than 68.82% of its industry peers.
The Debt to FCF ratio of SHLS is 1.92, which is an excellent value as it means it would take SHLS, only 1.92 years of fcf income to pay off all of its debts.
Looking at the Debt to FCF ratio, with a value of 1.92, SHLS belongs to the top of the industry, outperforming 89.25% of the companies in the same industry.
SHLS has a Debt/Equity ratio of 0.25. This is a healthy value indicating a solid balance between debt and equity.
SHLS's Debt to Equity ratio of 0.25 is in line compared to the rest of the industry. SHLS outperforms 58.06% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.25 | ||
| Debt/FCF | 1.92 | ||
| Altman-Z | 3.37 |
ROIC/WACC0.3
WACC14.5%
2.3 Liquidity
SHLS has a Current Ratio of 2.34. This indicates that SHLS is financially healthy and has no problem in meeting its short term obligations.
Looking at the Current ratio, with a value of 2.34, SHLS is in the better half of the industry, outperforming 64.52% of the companies in the same industry.
SHLS has a Quick Ratio of 1.58. This is a normal value and indicates that SHLS is financially healthy and should not expect problems in meeting its short term obligations.
SHLS has a Quick ratio of 1.58. This is in the better half of the industry: SHLS outperforms 60.22% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 2.34 | ||
| Quick Ratio | 1.58 |
3. Growth
3.1 Past
SHLS shows a strong negative growth in Earnings Per Share. In the last year the EPS decreased by -45.28%.
Measured over the past years, SHLS shows a decrease in Earnings Per Share. The EPS has been decreasing by -0.95% on average per year.
Looking at the last year, SHLS shows a very negative growth in Revenue. The Revenue has decreased by -18.09% in the last year.
Measured over the past years, SHLS shows a very strong growth in Revenue. The Revenue has been growing by 22.54% on average per year.
EPS 1Y (TTM)-45.28%
EPS 3Y14.47%
EPS 5Y-0.95%
EPS Q2Q%-57.14%
Revenue 1Y (TTM)-18.09%
Revenue growth 3Y23.25%
Revenue growth 5Y22.54%
Sales Q2Q%-11.21%
3.2 Future
The Earnings Per Share is expected to grow by 13.15% on average over the next years. This is quite good.
The Revenue is expected to grow by 9.25% on average over the next years. This is quite good.
EPS Next Y12.28%
EPS Next 2Y20.47%
EPS Next 3Y19.2%
EPS Next 5Y13.15%
Revenue Next Year10.68%
Revenue Next 2Y11.19%
Revenue Next 3Y11.31%
Revenue Next 5Y9.25%
3.3 Evolution
The EPS growth rate is accelerating: in the next years the growth will be better than in the last years.
When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is decreasing.
4. Valuation
4.1 Price/Earnings Ratio
With a Price/Earnings ratio of 17.33, SHLS is valued on the expensive side.
Based on the Price/Earnings ratio, SHLS is valued cheaply inside the industry as 83.87% of the companies are valued more expensively.
When comparing the Price/Earnings ratio of SHLS to the average of the S&P500 Index (27.24), we can say SHLS is valued slightly cheaper.
With a Price/Forward Earnings ratio of 10.49, the valuation of SHLS can be described as very reasonable.
Based on the Price/Forward Earnings ratio, SHLS is valued cheaply inside the industry as 92.47% of the companies are valued more expensively.
SHLS's Price/Forward Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 36.42.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 17.33 | ||
| Fwd PE | 10.49 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, SHLS is valued a bit cheaper than the industry average as 79.57% of the companies are valued more expensively.
93.55% of the companies in the same industry are more expensive than SHLS, based on the Price/Free Cash Flow ratio.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 11.36 | ||
| EV/EBITDA | 17.7 |
4.3 Compensation for Growth
The PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a correct valuation of the company.
SHLS has a very decent profitability rating, which may justify a higher PE ratio.
SHLS's earnings are expected to grow with 19.20% in the coming years. This may justify a more expensive valuation.
PEG (NY)1.41
PEG (5Y)N/A
EPS Next 2Y20.47%
EPS Next 3Y19.2%
5. Dividend
5.1 Amount
SHLS does not give a dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
NASDAQ:SHLS (8/5/2025, 9:52:04 AM)
5.025
-0.35 (-6.6%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCapital Goods
GICS IndustryElectrical Equipment
Earnings (Last)
Earnings (Next)
Inst Owners116.37%
Inst Owner Change-1.15%
Ins Owners0.76%
Ins Owner Change13.97%
Market Cap840.03M
Analysts77.69
Price Target6.74 (34.13%)
Short Float %13.42%
Short Ratio3.78
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
Yearly DividendN/A
Dividend Growth(5Y)N/A
DPN/A
Div Incr Years0
Div Non Decr Years0
Ex-DateN/A
Surprises & Revisions
EPS beat(2)0
Avg EPS beat(2)-21.11%
Min EPS beat(2)-23.86%
Max EPS beat(2)-18.35%
EPS beat(4)1
Avg EPS beat(4)-9.26%
Min EPS beat(4)-23.86%
Max EPS beat(4)25.69%
EPS beat(8)4
Avg EPS beat(8)-3.89%
EPS beat(12)8
Avg EPS beat(12)8.82%
EPS beat(16)11
Avg EPS beat(16)3.62%
Revenue beat(2)2
Avg Revenue beat(2)4.38%
Min Revenue beat(2)2.62%
Max Revenue beat(2)6.14%
Revenue beat(4)4
Avg Revenue beat(4)4.45%
Min Revenue beat(4)1.47%
Max Revenue beat(4)7.56%
Revenue beat(8)5
Avg Revenue beat(8)0.87%
Revenue beat(12)8
Avg Revenue beat(12)2.33%
Revenue beat(16)9
Avg Revenue beat(16)1.09%
PT rev (1m)3.75%
PT rev (3m)5.86%
EPS NQ rev (1m)-0.23%
EPS NQ rev (3m)11.05%
EPS NY rev (1m)0.14%
EPS NY rev (3m)-3.7%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)10.11%
Revenue NY rev (1m)0.12%
Revenue NY rev (3m)2.32%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 17.33 | ||
| Fwd PE | 10.49 | ||
| P/S | 2.16 | ||
| P/FCF | 11.36 | ||
| P/OCF | 10.11 | ||
| P/B | 1.5 | ||
| P/tB | 1.87 | ||
| EV/EBITDA | 17.7 |
EPS(TTM)0.29
EY5.77%
EPS(NY)0.48
Fwd EY9.53%
FCF(TTM)0.44
FCFY8.81%
OCF(TTM)0.5
OCFY9.89%
SpS2.33
BVpS3.34
TBVpS2.69
PEG (NY)1.41
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 2.42% | ||
| ROE | 3.41% | ||
| ROCE | 6.2% | ||
| ROIC | 4.38% | ||
| ROICexc | 4.61% | ||
| ROICexgc | 5.51% | ||
| OM | 11.29% | ||
| PM (TTM) | 4.91% | ||
| GM | 34.39% | ||
| FCFM | 19.03% |
ROA(3y)9.74%
ROA(5y)9.41%
ROE(3y)18.49%
ROE(5y)N/A
ROIC(3y)7.05%
ROIC(5y)8.61%
ROICexc(3y)7.24%
ROICexc(5y)8.93%
ROICexgc(3y)8.98%
ROICexgc(5y)20.95%
ROCE(3y)9.98%
ROCE(5y)12.18%
ROICexcg growth 3Y-14.52%
ROICexcg growth 5Y-38.93%
ROICexc growth 3Y-7.16%
ROICexc growth 5Y-15.5%
OM growth 3Y-8.94%
OM growth 5Y-7.19%
PM growth 3Y77.6%
PM growth 5Y-19.03%
GM growth 3Y-2.8%
GM growth 5Y3.07%
F-Score5
Asset Turnover0.49
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.25 | ||
| Debt/FCF | 1.92 | ||
| Debt/EBITDA | 2.5 | ||
| Cap/Depr | 70.63% | ||
| Cap/Sales | 2.35% | ||
| Interest Coverage | 3.9 | ||
| Cash Conversion | 146.25% | ||
| Profit Quality | 387.85% | ||
| Current Ratio | 2.34 | ||
| Quick Ratio | 1.58 | ||
| Altman-Z | 3.37 |
F-Score5
WACC14.5%
ROIC/WACC0.3
Cap/Depr(3y)65.64%
Cap/Depr(5y)54.49%
Cap/Sales(3y)1.74%
Cap/Sales(5y)1.8%
Profit Quality(3y)176.81%
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)-45.28%
EPS 3Y14.47%
EPS 5Y-0.95%
EPS Q2Q%-57.14%
EPS Next Y12.28%
EPS Next 2Y20.47%
EPS Next 3Y19.2%
EPS Next 5Y13.15%
Revenue 1Y (TTM)-18.09%
Revenue growth 3Y23.25%
Revenue growth 5Y22.54%
Sales Q2Q%-11.21%
Revenue Next Year10.68%
Revenue Next 2Y11.19%
Revenue Next 3Y11.31%
Revenue Next 5Y9.25%
EBIT growth 1Y-31.89%
EBIT growth 3Y12.23%
EBIT growth 5Y13.73%
EBIT Next Year76.96%
EBIT Next 3Y32.67%
EBIT Next 5Y22.66%
FCF growth 1Y4.24%
FCF growth 3YN/A
FCF growth 5Y15.88%
OCF growth 1Y10.44%
OCF growth 3YN/A
OCF growth 5Y17.31%